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Things You Should Be Aware of While Buying Car Insurance

Published On Aug 18, 2022

Things You Should Be Aware of While Buying Car Insurance

Because it is required, the majority of car owners in India purchase an automobile insurance plan. In general, people do not compare auto insurance policies and rely on their purchases at a cheap premium price. Having insufficient coverage is a common result of this.

Equal weight should be given to purchasing auto insurance as to purchasing a vehicle. Therefore, before making a purchasing decision, everybody who owns a car needs to be informed of the various features of auto insurance and compare the various products on the market. If you're buying vehicle insurance for the first time, knowing the details will enable you to get enough coverage and earn greater benefits.

Things You Should Be Aware of While Buying Car Insurance

Factors Before Purchasing Car Insurance

The following suggestions will significantly help you in comparing insurance and selecting the best option.

  • Find A Comprehensive Coverage

Checking if the policy offers comprehensive coverage is one of the crucial things to look for when you compare car insurance online. A comprehensive automobile insurance policy offers more coverage than third-party insurance; it includes coverage for both personal injury and third-party liability. A complete insurance policy's protection against man-made and natural calamities like fire, theft, riots, rain, storms, etc. is another important benefit.

Comprehensive auto insurance may have a higher premium than third-party insurance, although if you think about the advantages it provides, the higher premium is well worth it.

  • Check The IDV Offered by The Insurance Provider

The amount that your insurance provider will pay if your car is stolen or severely damaged beyond repair is known as the insured declared value or IDV. The IDV should not be confused with the resale value of your car; it is just the maximum amount that the insurer will pay you if an accident results in the total loss of your car.

You can receive a different IDV from various insurance providers. It is crucial that you assess the car's current market value before looking up the IDV. Make careful to search for an insurer that offers an IDV that is as close as possible to the automobile's market value when comparing car insurance policies online.

  • Assess the Services Provided

While the majority of individuals pick the auto insurance provider with the cheapest premium, you must not make this error. The popularity of the insurers and the calibre of the services provided must both be taken into account when choosing the best auto insurance plan.

A reputable insurance provider guarantees constant support and quick responses to all of your questions and service requests. Examining user reviews is one of the finest ways to determine the calibre of services being provided. Additionally, you should consider the company's claim settlement ratio; it is recommended to purchase insurance with a higher claim settlement percentage.

  • Check No Claim Bonus

No Claim Bonus, sometimes known as NCB, is the compensation given by insurance companies for a year of no claims. When you renew your auto insurance, the reward is typically given to you in the form of a discount on the rate. When comparing vehicle insurance policies, it's important to see if the provider offers an NCB programme.

Since it is controlled by IRDAI, the NCB discount granted is the same by all insurance companies. The NCB rises yearly until you stop filing claims. The NCB will reduce your premium by up to 50% if you go five years without making a claim.

  • Look for Car Insurance Add-ons

The additional protection supplied by that of the insurance policy over and above the basic coverage are known as add-on covers or riders. Roadside assistance, return to invoice coverage, and zero-depreciation coverage are some of the most popular extra protection options.

When comparing care insurance policies, seek for a firm that offers the add-on coverage you require since not all insurance companies may provide all the coverage you require.


Comparing auto insurance quotes is now simpler than ever before thanks to the internet. With the touch of a mouse, you may request quotations from as many insurers as you'd like and then select the best insurance plan and provider for your unique circumstances.

Also Read: 

Zero Depreciation Cover Benefits

Can You Claim Car Insurance With A Temporary Registration Number?


This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.
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